A top portfolio strategist from the $244-billion asset management giant Morningstar says that Cardano (ADA) could become one of the “Big Three” mainstream cryptocurrencies.
In a report from Business Insider, Morningstar’s crypto-focused strategist Amy Arnott says that investors looking to get into digital assets want to avoid stomach-wrenching volatility.
[adinserter block="1"]Arnott believes that a crypto-based exchange-traded fund (ETF) – if one existed – would be the best route for investors to skirt over-the-top volatility.
“What I would really like to see is a diversified crypto index fund in the form of an ETF… The SEC still hasn’t approved any ETFs in the United States which makes it very difficult for mainstream investors to gain exposure to cryptocurrencies. It seems like there’s a lot of internal debate at the SEC about whether they should go ahead with this – it’s an important trend and a lot of investors need to have access to it, but they do need to protect investors.”
If widely accepted digital assets are the next best thing after an ETF, Arnott says Cardano could become one of “the Big Three” mainstream cryptocurrencies along with Bitcoin and Ethereum.
“Cardano is similar to Ethereum, in that it’s a protocol that has a lot of potential technical applications… There’s a lot of enthusiasm about Cardano, and also various stablecoins…
The interesting thing that’s happened over the past year or so is that institutional investors have been far more willing to adopt cryptocurrencies and look at them as an investment asset. As that trend continues, we’ll see other cryptocurrencies become more mainstream.”
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